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Mihir

Mihir Tanna  |876 Answers  |Ask -

Tax Expert - Answered on Apr 26, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Asked by Anonymous - Mar 16, 2024Hindi
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Husband (H) and Wife (W) sold Co-ownership Flat for Rs. 100 Lakh. Buyer mistakenly Transferred entire Rs. 99 Lakh to H’s Bank Account. Buyer mistakenly Deposited entire TDS (1 %) of Rs. 1 Lakh in the Name of W u/s 194IA. 26AS of W reflects Transaction Value of Rs. 100 Lakh and TDS of Rs. 1 Lakh. 26AS of H does not reflect anything u/s 194IA. ITR of H and W for AY 2024-25 will offer for Tax 50 % each of Long Term Capital Gains (LTCG). W will claim entire TDS against 50 % LTCG and H will not claim any TDS against his 50 % share of LTCG. This will result in mis-match in both the cases. What is the possible resolution for the said mis-match?

Ans: If W file feedback in AIS for the fact that she is beneficial owner of 50% of property, issue may get resolved

I understand that W paid consideration at the time of acquisition of property, from own source of money
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Tejas

Tejas Chokshi  |126 Answers  |Ask -

Tax Expert - Answered on Aug 07, 2023

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Sir, during this month (August2023) I sold my flat which was purchased by me in 2010. The total sale consideration as per govt guidelines was Rs 5973000/ and was registered at that amount, accordingly TDS at 1% on it was deducted at Rs 59730 and was credited to the govt account. My query is , TDS on sale of property at 1% is applicable in case the amount of sale exceeds Rs 50.00 lakhs . Whether the TDS is applicable on full sale consideration or on the difference amount ie, (5973000-500000)Rs 973000. 2. I had purchased the flat in April 2010 and the purchase price was Rs 3150000/ including Stamp duty, Registration charges and small amount towards interior work. I request you to advise me the applicability of Capital Gain Tax on it. Now I do not want to invest in any new property or in Capital gain bonds, I want to pay the applicable tax and close the transaction. Please advise me about the applicable Tax and close the formalities applicable in this regard. Siddramappa Kudarimoti.
Ans: The TDS (Tax Deducted at Source) of 1% on the sale of property exceeding Rs 50 lakhs is applicable on the full sale consideration. In your case, since the total sale consideration was Rs 5,973,000, the TDS of Rs 59,730 was deducted as per the guidelines. Based on the information you've provided, you might be liable for Capital Gains Tax. Capital Gains Tax is calculated based on the difference between the selling price and the indexed purchase price. The indexed purchase price adjusts the original purchase price for inflation over the holding period.
The tax on long-term capital gains is usually 20% (plus applicable surcharge and cess) after considering any exemptions or deductions available under Section 54 or Section 54F if you are not investing in another property or capital gains bonds.

To close the transaction and fulfill your tax obligations, you should consider the following steps:

a. Calculate Capital Gains: As explained above, calculate the capital gains based on the indexed purchase price and selling price.

b. Pay Capital Gains Tax: If you decide not to invest in another property or capital gains bonds, you will need to pay the applicable capital gains tax. You can do this by filling out the appropriate sections in your income tax return and paying the tax amount.

c. File Income Tax Return: Ensure that you accurately report the capital gains in your income tax return for the assessment year.

d. Keep Documentation: Maintain all relevant documents related to the property sale, purchase, and tax calculations for future reference

..Read more

Mihir

Mihir Tanna  |876 Answers  |Ask -

Tax Expert - Answered on May 24, 2024

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Plot of Land Ballia,UP. Purchase year-1990 in two instalments Purchase price-Rs 42,000 (35000+7000) Stamp Duty Valuation-Rs. 73,000(Rs.9000+Rs.64000) Advance taken in 2019 -Rs. 15 lakh without any documentation in joint SBI Bank Account of father and mother, both sr citizen father being first holder. Father expired in 2020. Sale to different person on August 11 2023 for Rs 20 lakh received in HDFC Bank joint account of mother and son,mother first holder . Rs. 15 lakh transferred through RTGS to the person who gave advance and Rs.3 lakh as interest claimed by him transferred through IMPS and Phone Pe to a different person whom the first person owed money, at the request of the creditor and debtor. Stamp Duty Valuation of Land in August 2023- 39 lakh. The total Yearly Income of the mother, sr citizen, is Rs. 12000 as pension (Rs. 1000 per month). She has not filed any previous ITR. Tax implication and tax planning for both buyer and seller and response to following specific queries- • In ITR, there are 3 rows. One is for sale consideration,2nd one is for stamp duty valuation and 3rd one which automatically takes higher of these two as sale consideration under section 50C. So here If I put actual sale consideration in both rows, will it amount to false declaration ? Consequences for this because if I give stamp value, then automatically IT system will pick up the higher stamp value and calculate tax accordingly. What to do then? • Who will bear the tax burden? First Account holder or 2nd Account Holder or both or any clubbing provision? • Sr. Citizen Mother has only Rs 1000(one thousand) per month family pension as income and does not file ITR. If she does not pay any tax at all, what are the chances of detailed scrutiny and consequences? • If mother happens to be assesse, does she need to pay any advance tax or file ITR? • How to get Fair Market Value (FMV) and circle rate of Land as on 01.04.2001 for calculating Indexed cost of Acquisition in 2023-24. • How to get FMV on date of agreement/date of sale? • If assesse declares certain FMV in ITR both on 01.04.2001 as well as on date of sale i.e. 11.08.2023, is supporting documentation required at any stage or mere declaration will suffice? Steps to be taken by IT in this regard? • What can be the maximum Tax Liability and maximum date of depositing this tax/ITR and steps to mitigate this tax liability/payment?
Ans: Query require detailed discussion face to face. Please check with tax consultant.

..Read more

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